Speaking at the 19th Government–Private Sector Forum in Phnom Penh, Chanthol said that while Cambodia successfully concluded a reciprocal tariff agreement with Washington in late October — becoming the first country worldwide to do so — talks are continuing in hopes of reducing duties to below 19 percent.
“We hope the rate can go lower, even to zero, because the U.S. does not produce these goods domestically,” Chanthol said. “We will keep negotiating without pause to attract more investors and create jobs for our people.”
Chanthol noted that nearly 600 new factory projects were approved by the Council for the Development of Cambodia in the first 10 months of 2025, expected to generate more than 400,000 jobs.
Cambodia’s Prime Minister Hun Manet and U.S. President Donald Trump talk as they sign documents, during the signing of a ceasefire deal between Cambodia and Thailand on the sidelines of the 47th Association of Southeast Asian Nations (ASEAN) summit in Kuala Lumpur, Malaysia, October 26, 2025.
Cambodia’s push comes amid a turbulent trade environment. In August, the White House imposed a 19 percent tariff on Cambodian-origin exports, among the highest rates levied on any U.S. trading partner. The move directly affected Cambodia’s garment, footwear and travel goods industries, which account for the majority of shipments to the U.S. — roughly 38 percent of Cambodia’s total exports in 2024, valued at nearly $10 billion.
While the October agreement marked a breakthrough, analysts say the elevated tariff burden still threatens Cambodia’s competitiveness compared with regional peers such as Viet Nam, where lower energy costs and stronger investor confidence give manufacturers an edge.
Chanthol expressed pride in Cambodia’s ability to secure the deal, calling it a sign of the country’s resilience and attractiveness to foreign investors. “This success shows Cambodia remains highly competitive in the region,” he said.
The government hopes further tariff reductions will sustain momentum in exports to the U.S., which remain a vital lifeline for Cambodia’s economy and a key driver of employment.
Cambodia’s exports to the United States reached more than $10 billion in the first 10 months of 2025, marking a 26.4% increase compared to the same period last year, despite a newly imposed 19% U.S. tariff on Cambodian goods.
According to data from the General Department of Customs and Excise, bilateral trade between Cambodia and the United States totaled $10.72 billion from January to October 2025, up 27% year-on-year. Cambodian exports accounted for $10.4 billion of that figure, while U.S. imports to Cambodia rose nearly 50% to $326 million.
Cambodia’s key exports to the U.S. include garments, travel goods, bicycles and consumer products. In return, Cambodia imports vehicles, machinery, jewelry, cosmetics, electronics and other consumer items.
Source: Kampucheathmey
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<p>Time: November 2025<br /> By: WTO and International Trade Group, Legal Department – VCCI</p>
